Chindata Group (NASDAQ:CD) versus Interactive Brokers Group (NASDAQ:IBKR) Financial Comparison

Interactive Brokers Group (NASDAQ:IBKR) and Chindata Group (NASDAQ:CD) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.

Valuation and Earnings

This table compares Interactive Brokers Group and Chindata Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Interactive Brokers Group	$10.42 billion	13.94	$984.00 million	$2.50	34.17
Chindata Group	$1.87 million	353.53	-$5.10 million	($0.03)	-200.33

Interactive Brokers Group has higher revenue and earnings than Chindata Group. Chindata Group is trading at a lower price-to-earnings ratio than Interactive Brokers Group, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

23.8% of Interactive Brokers Group shares are owned by institutional investors. Comparatively, 30.8% of Chindata Group shares are owned by institutional investors. 2.8% of Interactive Brokers Group shares are owned by company insiders. Comparatively, 5.5% of Chindata Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Interactive Brokers Group has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500. Comparatively, Chindata Group has a beta of 5.23, suggesting that its share price is 423% more volatile than the S&P 500.

Profitability

This table compares Interactive Brokers Group and Chindata Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Interactive Brokers Group	9.94%	5.37%	0.52%
Chindata Group	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and price targets for Interactive Brokers Group and Chindata Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Interactive Brokers Group	0	6	7	1	2.64
Chindata Group	1	0	0	0	1.00

Interactive Brokers Group currently has a consensus target price of $98.90, suggesting a potential upside of 15.78%. Given Interactive Brokers Group’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Interactive Brokers Group is more favorable than Chindata Group.

Summary

Interactive Brokers Group beats Chindata Group on 11 of the 15 factors compared between the two stocks.

About Interactive Brokers Group

Interactive Brokers Group, Inc. operates as an automated electronic broker worldwide. The company engages in the execution, clearance, and settlement of trades in stocks, options, futures, foreign exchange instruments, bonds, mutual funds, exchange traded funds (ETFs), precious metals, and cryptocurrencies. It also custodies and services accounts for hedge and mutual funds, ETFs, registered investment advisors, proprietary trading groups, introducing brokers, and individual investors. In addition, the company offers custody, prime brokerage, securities, and margin lending services. It serves institutional and individual customers through electronic exchanges and market centers. The company was founded in 1977 and is headquartered in Greenwich, Connecticut.

About Chindata Group

Chindata Group Holdings Limited provides carrier-neutral hyperscale data center solutions in Mainland China, India, and Southeast Asia. It offers artificial intelligence, cloud computing, smart cities and homes, online entertainment, and other on-demand services. The company also provides internet data center colocation and rental services; and technical and consulting services. Its integrated data center solutions include infrastructure, power supply, connectivity and operation and maintenance, and tailor-made to their scale and requirements throughout the planning, design, construction, and operation process. The company was formerly known as BCPE Bridge Stack Limited and changed its name to Chindata Group Holdings Limited in April 2020. Chindata Group Holdings Limited was founded in 2015 and is headquartered in Beijing, China.